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bork
April 10th 2006, 10:03 PM
Originally Posted by krzysio
It is posted at:
http://www.math.ilstu.edu/krzysio/KO...ise-12-3-5.pdf
This exercise includes expense-loaded premium, not covered on the CAS 3 exam, but even if you study for the CAS 3 exam, you will understand the contents of the exercise, once you read the solution.

I hope you will enjoy it. Next week, Dr. Kubicka will post on the property-casualty material.

And Merry Christmas, and Happy New Year, and happy holidays to everyone.

Yours,
Krzys'

For the prospective loss function at 50, why are the 1st year policy expenses (0.08G+25) included? I thought these expenses only apply to the 1st year, in this problem at age 40. For the prospective loss function at 50 there are no 1st year policy expenses b/c the 1st year is at 40, right?

krzysio
April 11th 2006, 12:57 AM
You are right. That term is not needed. It does not change the answer, as the question is about the variance. Sorry about this oversight. I think I may have pasted a formula and edited it, and left this thing in by mistake. Not that this is a good excuse. I appreciate your help with this correction. Thank you.

Yours,
Krzys'

Originally Posted by krzysio
It is posted at:
http://www.math.ilstu.edu/krzysio/KO...ise-12-3-5.pdf
This exercise includes expense-loaded premium, not covered on the CAS 3 exam, but even if you study for the CAS 3 exam, you will understand the contents of the exercise, once you read the solution.

I hope you will enjoy it. Next week, Dr. Kubicka will post on the property-casualty material.

And Merry Christmas, and Happy New Year, and happy holidays to everyone.

Yours,
Krzys'

For the prospective loss function at 50, why are the 1st year policy expenses (0.08G+25) included? I thought these expenses only apply to the 1st year, in this problem at age 40. For the prospective loss function at 50 there are no 1st year policy expenses b/c the 1st year is at 40, right?

krzysio
April 11th 2006, 12:58 AM
It is posted at:
http://www.math.ilstu.edu/krzysio/KO-M-Exercise-4-8-6.pdf

Yours,
Krzys'